Section 44 AD - Tax Audit

If anyone is aware please do answer.

(a) If the business turnover is less than 01 crore and income is more than 6% (Digital Transactions), then can the assessee file ITR-3 form? Or is it mandatory to opt Section 44AD (Presumptive Scheme) and file ITR 4S?

(b) If the assessee doesnt opt Section 44AD and willing to show income less than 6%, then maintenance of Books and Tax Audit mandatory irrespective of Turnover (even for 15-20 Lakhs turnover)?

Replies (3)
Quick Summary
This discussion clarifies the applicability of Section 44AD (Presumptive Scheme) for businesses with turnover under £1 crore but income exceeding 6% of digital transactions. It addresses whether ITR-3 is an option or if ITR-4S is mandatory. Furthermore, it explores the requirements for maintaining books of accounts and conducting tax audits if the presumptive scheme isn't opted for and lower income is declared, even for businesses with turnovers between £15-20 lakhs. The rules for new businesses and stock market trading are also briefly touched upon.

A) in that case you should file itr 3
b) not required for maintenance of books as turnover is less than 2500000 rupees
A) Not mandatory opt 44Ad, it's optional
b) if you showing income below 6% or 8 % of turnover than tax audit compulsory

@ Sourav

Rule is:

If the sale/turnover/gross receipts from the business or profession is more than Rs. 25,00,000 or the income from business or profession is more than Rs. 2,50,000 in any of the 3 preceding years, then books of accounts will be compulsorily maintained.

What if the business is a new one. Should they maintain books even for the first Financial Year?

What books should one maintain if the business is stock market trading? Just a report from the stock broker would suffice?

 

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